Thirteen Labour MPs have urged Chancellor Rachel Reeves to abolish council tax, arguing that the current system is outdated and unfair.
In a letter sent to the Chancellor last month, the MPs called for the tax to be replaced with a new model that better reflects the dramatic rise in property values in London and the South East over the past 35 years.
‘If we are to succeed in our mission to transform Britain and fight back against Reform, we must be bold and embrace new ideas that put more money back into the pockets of working people,’ the MPs wrote.
‘One place we can start is by looking at ways we can abolish the outdated, deeply regressive, and increasingly indefensible council tax system.’
Council tax was introduced in the early 1990s and is still based on property valuations from 1991. Critics argue that this has led to widespread inequality, with households in lower-value regions paying a disproportionate share compared to those in wealthier areas.
The Institute for Fiscal Studies (IFS) last week also urged Reeves to use the upcoming Budget to reform the system, calling for a more ‘rational’ approach to property taxation.
Jonathan Brash, Labour MP for Hartlepool and one of the letter’s signatories, wrote on X: ‘Fixing council tax is the big, bold move that will put money back into working-class communities and show Labour is delivering.’
If you’d like to explore the deeper connections between finance and structural reform, check out 'Autumn Budget Insights: Can reorganisation and finance move in step?' on LocalGov.
